Physician Leadership Engagement to Produce System Change David Swieskowski, MD, MBA Senior VP & Chief Accountable Care Officer Mercy Medical Center Des Moines, Iowa Objectives Discuss adoption of change Show how Kotter s 8 steps for leading change can be applied as a leadership process Use Mercy s ACO as an example of how this process can be used in a healthcare setting Increase familiarity with how an ACO works Show the role of leadership is to produce change Diffusion of Hybrid Seed Corn in Two Iowa Communities by Bryce Ryan and Neal Gross; Rural Sociology; March 1943 Hybrid Corn was introduced in 1928 Yields were 20% higher Knowledge of a change is different than acceptance Time lag of about 7 years between first knowledge and adoption Acceptance is influenced by Shared experiences of Early Adopters Ability to personally perform small tests change (PDSA) 1
Diffusion of Hybrid Seed Corn in Two Iowa Communities The Part of the diffusion curve from about 10% to 20% is the heart of the diffusion process Lessons on Diffusion of Change Measurement to prove the advantages is key Diffusion is fundamentally a social process Exchange of personal experiences is at the heart of diffusion Encourage the use of small tests of change (PDSA) Resistors are irrelevant to the change process Developing the critical mass with enough positive experiences is what counts Work with the willing Don t waste time on the laggards An ACO is a group of Health care providers organized to coordinate care across the continuum and take risk Admissions are no longer a good thing Instead it is a sentinel event for care gone wrong Success will lead to decreased hospital revenue Need to convert from a hospital focus to a care system across the continuum Leadership is needed to create this degree of change 2
Why physicians need to be engaged in leadership and change management Control your own destiny or someone else will -Jack Welch Barriers to physician leadership Desire for Autonomy Physicians don t value leadership authority Believe the real work is seeing patients Even in groups, physicians don t readily acknowledge their interdependence for success Not team oriented Consensus decision making Physicians don t feel obligated to comply with group decisions if they don t agree Lower pay for leadership work Part time pay does not cover office overhead Overcoming Barriers Formal governance structures Provide a forum for leadership and enforcing decisions Formal Process for leading change Kotter s 8 steps 3
Kotter s 8 Steps for Leading Change 1. Establish a sense of urgency Why is change better than the status quo 2. Create a guiding coalition Senior leader support and front line champions 3. Develop a vision and strategy Consistent over time 4. Communicate the change vision Actions must match words 5. Empower broad-based action Governance, decision rights 6. Generate short term wins Start with simple steps not grand solutions 7. Consolidate gains and produce more change Make it clear that new approaches are superior (quality, financial) 8. Anchor new approaches in the culture Language used, training, measures 1. Establish a sense of urgency Be clear about why you are changing Explain why the change is preferable to the status quo Need to meet people where they are: Quality Cost to patients Physician reimbursement USA Healthcare Spending is not Performance Based Healthcare Spending per Capita vs. Life Expectancy in OEC Countries 2008 83 Japan 82 81 80 79 78 USA 77 76 75 74 Turkey 73 0 1000 2000 3000 4000 5000 6000 7000 8000 Data Source: OECD 4
Physicians Need an Alternative to FFS $50 CMS RVU Conversion Factor 1998 CF Adjusted for Inflation $45 $40 $/wrvu: - Down 7% since 1998 Lags Inflation by 40% $35 $30 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2. Create a Guiding Coalition Put together a team with power to lead change Right People identify the key relationships Position power Expertise Credibility Leadership Develop a common goal Commitment to improving the health of the communities we serve Create trust Pre-existing silos must be broken down (i.e. specialist vs. primary care) Social interactions Words match actions 5
The Dyadic Management Model for the Integrated, Community Health System Physician Partner Administrative Partner Quality of the Clinical Professionals & Work Operations Provider Behaviors Provider Innovation Compliance Patient Care Standards Clinical Pathway/ Model Management Mission Vision Values Culture Overall Performance Internal Org. Relationships Revenue Management Operating Expense Management Capital Planning & Application Staffing Models Performance Reporting Referring Physician Relations Strategy Supply Chain Provider Leverage Support Systems & Services 17 University of Iowa Health Alliance University of Iowa Health Alliance, LLC ( Enabling Company) Genesis Health System Mercy Cedar Rapids Mercy Health Network UI Health Care Other Potential Members Network Board and Management Member Sub-Agreements Primary Care Development / Care Coordination Research & education Insurance Initiatives /Relationships ACSSO (Accountable Care / Shared Services Medicare ACO Integrate Ancillary / Treatment Services Clinical Services Home Care Ambulatory Services New Technologies / Innovation Businesses Required Components of Network Membership Specialist Relationships Telehealth 18 6
3. Develop a vision and strategy Vision is the picture of the future It directs the change effort Can motivate action that is not always in the short term interest Strategy is the plan to achieve the vision Confers competitive advantage, not just a good thing to do Must be feasible ACO Vision A value based reimbursement system is emerging which will: Reward keeping people healthy Require taking financial risk for populations of patients Require better care at lower cost Vision: a new payment model aligned with our mission 7
ACO - Clinical Strategy Advanced Primary Care Medical Home Access, Health Coaches, coordination of care, Self-management support IT systems - AEHR and Data Warehouse Chronic disease care Focus on patients with 2 or more chronic diseases Top 1% of patients account for 30% of healthcare cost Top 5% of patients account for 50% of healthcare cost Systems and Standardization Reduction in Variation Transitions in care Transition coach Extensivist Clinic Provides intensified ambulatory services for the sickest patients Clinical Integration across the continuum Increased Primary Care Higher Quality Ref: Baicker & Chandra; Health Affairs; April 2004 Increased Primary Care Reduced Spending Ref: Baicker & Chandra; Health Affairs; April 2004 8
MedVentive Population Manager: Robust Data Acquisition MedVentive Reports: 1. Quality 2. Utilization 3. Efficiency 4. Pharmacy 5. Outflow 2011 MedVentive Inc. All Rights Reserved. Proprietary and Confidential. 25 4. Communicate the change vision The power of the vision is strengthened as more people commit to it Leaders spend hundreds of hours developing a vision How do we communicate this to others Physicians are deluged with information How do you get through the filters Very difficult to let go of the status quo What is the impact on me Effective Communication Simplicity Short is more difficult than wordy Multiple forums & repetition Tell it 7 times in 7 ways Guiding coalition must model and communicate the vision Watch for inconsistencies Two way communication Discussion is better than a lecture Listen to fully understand Seek feedback 9
ACO Message We will achieve the triple aim Better care Better Health Lower Cost Improving Health will lower costs Teamwork will be required Patient Centeredness will guide our decisions Signals that a change is important Same ones used for financial goals Reporting metrics Resources allocated time is invested Compensation plan What gets celebrated 5. Empower broad-based action With a clear vision employees will know what to do Provide training Need a mechanism to make and enforce group decisions Confront those who undercut change Structural changes to remove barriers 10
Structural Changes to Empower Change New Job descriptions Evolving role of a Health Coach New Organizations ACO Integrated care committee Physician Executive Council Physician Champions Identify for each initiative Pay for their time Don t need engagement of all physicians 6. Generate short term wins Build momentum Start small pilots & use PDSA Cycles One clinic, one doctor, one patient Scoping of projects is important If you can t do it for one doctor or one patient you can t do it for a whole clinic Show others what s in it for them Population Based Care Hypertension Process Map 11
Mercy Clinics BP Run Chart All Hypertensive Patients vs. P4P Patients 7. Consolidate gains and produce more change Measure results Give feedback at the clinic and physician level Continue measurement over time You must make the business case Collect the data to prove it Make change the norm in your organization It s not the strongest who survive but those who adapt the quickest MCI Quality Run Chart 12
Medical Home Business Case Open Access Increases productivity by 10% 15% Registries Drive volume, P4P, Measurement for QI Pre-visit review (planning the visit) Increases revenue from medically necessary services Health coaches Redistributes doctor work increasing efficiency Chart review, SMS Standardization Improves quality and reduces the cost of producing a product or service Delivery system redesign Prepares you for Accountable Care Creates a culture for change ACO Business Case Additional low cost Primary Care interventions can improve the health of patients Improving the health of patients will reduce Hospitalizations ED use Drug costs Medicare Advantage plans have shown this is possible 8. Anchor new approaches in the culture Culture is an organization s unspoken shared values, beliefs, expectations, and behaviors Culture Change comes last, not first It requires behavior change and wins first Culture changes can be anchored by: Formal statements of mission, values, policies Rewards and reimbursement systems System incentive Plan Training and education programs Physician leadership training New job descriptions & org charts Changes in physical workspace 13
Mercy System Incentive Components Meeting attendance 10% Paid for attending 2 meetings a year Patient Satisfaction 45% Based on clinic scores for two questions: Explaining things in a way you can understand Appointment available within a reasonable amount of time. Quality 45% HgA1c poor control % of patients with hga1c > 9.0 or not done in the last year Hypertension % of patients with most recent BP < 140/90 Leadership Creates Change Leadership requires: Starting with a clear vision Team building Developing trust Communication Listening and seeking feedback Early wins Data collection Measures of success Culture change is created by success with many smaller changes 14